After Ethereum switched to a proof-of-stake consensus, the leading digital asset manager Grayscale Investments announced plans to liquidate all ETHPoW tokens acquired by Grayscale Ethereum Trust and Grayscale Digital Large Cap Fund. The management organization will sell close to 3.1 million ETHPoW worth of tokens. The incident sparked fury among the cryptocurrency community, which charged Grayscale with dumping.
Grayscale is accused of dumping ethyl phthalate after it announces selling 31 million tokens.
Both the fund and the trust will give Grayscale Investments the rights to all ETHPoW acquired as a result of the Merge, as stated in the company’s press release.
Grayscale Investments will then sell the ETHPoW within a 180-day window. Shareholders will receive a portion of the proceeds from the sale of the tokens. Grayscale Investments addressed the issue of the ETHPoW market’s lack of liquidity in the same announcement.
The company states that because the Ethereum proof-of-work network only went live yesterday, on September 15, there is ambiguity around its availability on any platforms and the amount of liquidity present there.
Concerns have been raised concerning the token’s extreme volatility, which also highlights the difficulty in anticipating the price at which its sale will take place.
